Kenya still lacks adequate measures to regulate mobile money lenders, the Centra Bank of Kenya admitted yesterday.
CBK governor, Patrick Njoroge told a parliamentary committee that despite its advancement in developing financial technology solutions, lack of adequate guidelines has opened up room for rogue players.
“We have seen some loopholes that we need to have sealed. We need to ensure that they are regulated by us,” he told the
Parliamentary Committee on Finance Planning.
The committee chaired by Marakwet West MP William Kisang raised concerns that Fintechs were taking advantage of cash strapped consumers who lack the adequate information on lending rates offered by the platforms.
“If these digital lenders are not under the purview of CBK, then who else should be regulating them? We need to look into it so that these digital loan platforms will not become the next big pyramid scheme,” Dagoretti South MP John KJ Kiarie said.
With the law capping interest rates making it hard for individuals to access credit, consumers have in the past two years opted for digital loan platforms.
Last week, CBK, CMA, IRA, Ministry of Trade, RBA and SASRA warned the public on the increasing wave of unlicensed digital financial service platforms.
